Hong Kong’s deficit rises to HK$115.9 billion, up 25% in 1 month

Hong Kong’s deficit rose by almost 25 per cent in one month to HK$115.9 billion (US$14.9 billion) by the end of July, according to the results for the 2025-26 financial year released on Friday.

The figure, representing results for the first four months of 2025-26, compares with a deficit of HK$93.9 billion at the end of June.

But a government source sought to ease concerns over the deficit, saying most of the revenue from salaries and profits taxes would be received in the latter half of the financial year.

The insider added that the stamp duty revenue the first four months had surged 71 per cent in year on year, and might end up 33 per cent higher than the original estimate.

Fiscal reserves further shrank to HK$538.4 billion as of July 31, down about 3.9 per cent from HK$560.4 billion as of end-June.

Hong Kong’s fiscal reserves stood at HK$654.3 billion at the beginning of the 2025-26 financial year.